Texas Department of Insurance Hikes Long-term Care Rates 75%
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Rick Perry likes to say that the reason the Texas economy performs so well is because of the quality of the state’s work force, the reasonableness of regulations pertaining to business, and the passage of tort reform in 2003. I’ll grant him his evaluation of the work force and the importance of tort reform. But when it comes to the reasonableness of regulations pertaining to business, that’s a different story. For instance, consider this story from the July 24 edition of the Dallas Morning News:
Two families are calling out the Texas Department of Insurance for not protecting ratepayers hit with a 75% increase in their premiums for long-term care insurance. They raise a valid question. Is the Texas Department of Insurance an ally of the insurance industry or an ally of consumers. Is the agency so limited in its powers granted by lawmakers that it can’t stop rising costs. Texas granted a 75% increase, compared with other states that approved a 20 or 25% increase when requested by Allianze Life Insurance Co. of North America.
How does this compare with other states? Texas granted a 75% increase, compared with other states that approved a 20% or 25% increase. That doesn’t sound reasonable to me. As for the question of whether TDI is an ally of the insurance industry or an ally of consumers, the facts speak for themselves.